Press release
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Acquisition of Lincoln Indicators – Investor Briefing Prime Financial Group Limited (ASX:PFG) 13.00, 23 April 2025For personal use only
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This investor presentation (Presentation) has been prepared by Prime Financial Group Limited (‘PFG’). Summary Information This Presentation contains summary information about Prime. The information in this Presentation is general background information and does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with Prime’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (‘ASX’), which are available at www.asx.com.au. Not all assets depicted in the Presentation are necessarily owned by Prime or any entity managed by Prime. Figures may not sum due to rounding. Currencies are generally presented in Australian dollars and times are references to Melbourne times except where the context requires otherwise. Forward Looking Statements This Presentation contains forward looking statements which may be subject to significant uncertainty outside of Prime’s control. No representation is made as to the accuracy or reliability of the forecasts or the assumptions on which they are based. Actual future events may vary from these forecasts. Users of this information are cautioned against placing undue reliance on any forward looking statements. Not Investment Advice This Presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire entitlements or shares. This Presentation is not a prospectus or a product disclosure statement under the Corporations Act 2001 (Cth) (Corporations Act) nor is it an offering document under any other law and has not been lodged with ASIC. The information in this Presentation has been prepared without taking into account the investment objectives, financial circumstances, taxation position or particular needs of investors. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek appropriate legal, financial and taxation advice appropriate to their jurisdiction. Disclaimer No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this Presentation. To the maximum extent permitted by law, none of PFG nor any of its related bodies corporate, shareholders or respective directors, officers, employees, agents or advisors (collectively, Related Parties), nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this Presentation. To the fullest extent permitted by law, Prime and its Related Parties: • do not accept any responsibility for any interpretation that any recipient or any other person may place on this Presentation or for any opinion or conclusion that any recipient or any other person may form as a result of examining the information contained in this Presentation; and • do not accept any liability, whether direct or indirect or consequential, for any loss, damage, cost, expense, outgoing, interest, loss of profits or loss of any kind (Losses) suffered or incurred by any person (whether foreseeable or not) as a result of or by reason of or in connection with the provision or use of information contained (or not contained) in this Presentation, or of any recipient or its representatives or advisers acting on or relying on any information provided or referred to in or omitted from this Presentation or any other written or oral opinions, whether the Losses arise in connection with any negligence, default or lack of care on the part of Prime and its Related Parties or any other cause. Any recipient of this presentation acknowledges and agrees that: • they will rely entirely upon their own assessment and advice in relation to the business, assets, financial position and affairs of PFG, including conducting independent inquiries, due diligence or analysis with appropriate legal, financial, taxation and other advice, as required; and • any opinions expressed in this presentation are based on the knowledge and approach of the persons forming the opinion at the date that the opinion was formed and may have ceased or may in the future cease to be appropriate in the light of subsequent knowledge or attitudes. Important Notice & Disclaimer 2Acquisition of Lincoln Indicators | Prime Financial Group Presentation For personal use only
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Who We Are We are a market leading Advice, Capital & Asset Management Group Founded on the principle of Connected Advice Experiences Our focus is on Emerging Businesses, Founders and High Net Worth Investors We believe in uncapped opportunities, prosperous and sustainable financial futures and impactful corporate citizenship $1.3B FUM Global Footprint 189+ Team Members 4 Service Lines 26 Year History 3Acquisition of Lincoln Indicators | Prime Financial Group Presentation For personal use only
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Our Journey in Numbers 5,000+ Clients served in Wealth Management & SMSFs 2,000+ Businesses helped 1,000+ Clients assisted with funding for innovation and new product development 100+ SMEs invested in, in the past 5 years 500+ Clients advised on growth, transition and succession 250+ Professional advice firms supported in their client services efforts 4Acquisition of Lincoln Indicators | Prime Financial Group Presentation For personal use only
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What We Do We have two segments and four key service lines plus a centralised / shared services structure Business Segment Prime Accounting & Business Advisory Accounting & Tax Compliance, Business Growth Advisory & Strategy, Outsourced CFO & Accounting Services plus Grants and R&D Tax Incentives Capital & Corporate Advisory Equity & Debt Capital Advisory, Finance, Corporate Development, M&A, Valuations, Consulting and Employee Share Plans Wealth Segment Wealth Management including Asset Management Strategic Financial Advice, Superannuation, Life Insurance, Investment Planning and Funds Management for High Net Worth and Wholesale Investors, with a diverse investment offering including access to Property Backed Debt, Equity and Alternative Investments including Private Credit and Equity SMSF Advice, Establishment, Administration & Compliance Services Centralised / Shared Services Structure (Finance, IT, HR, Marketing & Operations) 5Acquisition of Lincoln Indicators | Prime Financial Group Presentation For personal use only
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How We Do It Building scale organically, and via acquisition to add capabilities and clients Accounting & Business Advisory Alternative Funding Consulting Employee Share Plan Administration & Management Corporate Finance, M&A & Corporate Development Strategic Planning & Investment Advice Tailored Life Insurance Solutions SMSF Advice & Administration Wholesale Property Investment Opportunities Alternative Asset Management 6Acquisition of Lincoln Indicators | Prime Financial Group Presentation For personal use only
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Transaction overview Recurring revenue, quality earnings plus increased capability & cross-sell For personal use only
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Expanding Wealth Solutions and Distribution Reach • Prime has significantly expanded its Wealth offering and Distribution capability including access to a further 3,300 high-net-wealth investors, representing a 10x increase on current levels • Additional tools and services including research and information for self-directed investors through to managed investment solutions/funds complemented by Prime’s existing full Investment, Wealth Management and SMSF services • Further opportunity to support the Intergenerational Wealth needs of clients Consistent with Prime’s Strategy • The acquisition delivers on Prime’s strategy of growth through complementary and EPS-accretive acquisitions that increase customer diversification and recurring revenue with significant cross-sell opportunities into the wider group • This is the 4th acquisition Prime has completed in the past 2.5 years. With revenue of $10M - $11M, Lincoln Indicators represents a step up in size with previous acquisitions having revenue of $2M - $3M Translates to Revenue and Earnings growth • The acquisition will represent a small contribution to Prime’s FY25 revenue and earnings with a majority of this recurring revenue and an expected EBITDA margin of 15 – 20% (pre synergies) Lincoln Indicators Provides a Significant Platform for Future Growth 8Acquisition of Lincoln Indicators | Prime Financial Group Presentation For personal use only
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Purchase Price • Annualised Revenue $10M – $11M • EBITDA Margin 15 – 20% (pre synergies) • Total consideration of $15.75M for future on target EBITDA performance or potentially $17.9M if earnings targets are outperformed (four tranches*) • 3.4 – 4.5 times multiple based on future on target EBITDA • Consideration of approximately 80% cash and 20% PFG shares with payments to be made over a 3-year period, with $4M upfront Funding • The cash consideration for the acquisition, will be funded from the Company’s operating cashflow, debt facilitates and cash reserves Summary of the Transaction Announced Today 9Acquisition of Lincoln Indicators | Prime Financial Group Presentation *For details on the four tranches please refer to the ASX release. Total consideration is independent of payments for the associated intellectual property referred to in the ASX release. For personal use only
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How the Acquisition Drives Value Creation +$600M to $1.9B Growth in Funds Under Management Technology & Scalability 10 Acquisition of Lincoln Indicators | Prime Financial Group Presentation 10 $10M - 11M Revenue Annualised revenue, mostly recurring 15 – 20% EBITDA Margin Pre synergies Increase in High-Net-Worth Client Base 320 to 3,620 10x increase Growth in Team & Services +30 Team members to +2 Additional services 10 Team members across platform, AI and programming 219 For personal use only
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11 Strategy for Growth – Business & Wealth Organic Growth • Organic growth in existing service lines and new services • Recruiting team members with existing revenue streams and client bases • Cross delivery of additional services to existing clients • Stable and growing recurring revenue across Advice, Accounting, Wealth & Asset Management • Revenue diversification through emerging strategies and solutions Inorganic Growth • Lincoln Indicators (Wealth) acquired in Apr 2025 – added leading investment research, portfolio, platform and funds management business plus an additional 3,300 high-net- worth clients • EPM (Business) acquired in Jun 2024 – added new employee ownership and administration services and client base • Altor (Wealth), an Asset Manager acquired in Feb 2024 – added new capabilities in alternative assets and business growth funding solutions, plus grew the client base • Intello SMSF (Wealth) acquired in Oct 2022 – added new capability and scaled the client base for services and product • Will continue to pursue EPS accretive acquisitions that add new capabilities, scale and client base. Our goal is to double revenue from $26M in FY22 to $50M in FY25 – on track And then double revenue again to $100M within 3 – 5 years – on track 26 34 41 50 100 20 40 60 80 100 $M 0 FY22 FY23 FY24 FY25 FY30 Acquisition of Lincoln Indicators | Prime Financial Group Presentation For personal use only
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Confirming Outlook 1 2 3 • Organic growth to be driven across core services plus scaling up recent service offerings • Cross sell strategy to drive further organic growth Strong Organic Growth • Continuing to explore EPS accretive acquisitions that build scale and services Delivering Accretive Acquisitions • Investment in team, IT and infrastructure to drive efficiencies Scale Efficiencies to Drive Earnings 4 Driving Growth in Revenue, Underlying EBITDA & Dividends • Prime’s philosophy is to generate 15-20%+ revenue and Underlying EBITDA growth each year, plus dividend growth of 3-5% • Well placed to achieve a significant uplift in margin and profitability in H2 Expect To Generate 15-20%+ Revenue & Underlying EBITDA Growth 12Acquisition of Lincoln Indicators | Prime Financial Group Presentation For personal use only
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QuestionsFor personal use only
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Contact Simon Madder Managing Director & Chairman Prime Financial Group Ltd T (03) 9827 6999 E simonm@primefinancial.com.au Investor Relations Automic Markets T +61 438 630 422 E Adrian.mulcahy@automicgroup.com.au Adrian Mulcahy 14Acquisition of Lincoln Indicators | Prime Financial Group Presentation For personal use only